Does adjusted gross income include or not taxes ?

Question

like say i make 100,000 and pay 30,000 taxes....so i only get

70.000 really...is that my adjusted gross income ?

Answer 1

AGI is your gross income less certain adjustments for so-called "above the line" subtractions from income, such as alimony, student loan interest, retirement plan contributions, moving expenses, etc.  These subtractions are called "Adjustments," hence the term Adjusted Gross Income.

If you earn $100k, your AGI may also be $100k though in most cases it will be somewhat less once you subtract any adjustments to income as noted above.  If you're a wage earner some of those adjustments are included on your W-2, such as medical insurance and retirement plan contributions so no separate calculation is needed.

AGI is primarily used to calculate limitations for certain deductions such as the 7.5% limitation on medical expense deductions or the 2% limitation on certain miscellaneous deductions.  There are a few other purposes as well.

Once you have your AGI, you subtract the value of your exemptions and deductions to arrive at Taxable Income.  Your tax is based upon that number.

Once you have subtracted your taxes from your Gross Income, the result is your Net Income.  In your example, $70k is your Net Income.

FYI, someone earning $100k will pay less than $30k in taxes.  Taxes will take a noticeable bite, but not that much.

Answer 2

Yep, Judy is correct!

Answer 3

No, your adjusted gross income is before taxes are taken out.

Answer 4

No. Your adjusted gross income (AGI) is your worldwide income before standard or itemized deduction. the 70,000 is your take home pay. AGI  never includes what you payed in taxes.

Answer 5

No.   Your "adjusted gross income" is your gross income, minus any exemptions and itemized deductions (such as business expenses, home mortgage interest, medical expenses, etc.)

What you get after you pay your taxes is your "net income."